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Chronicles

The story behind the story

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Netflix plans to ship its last red DVD envelopes in September 2023, after 25 years of mailing shows and movies to subscribers and paving the way for streaming

Sarah Krouse / Wall Street Journal :

Wall Street Journal Sarah Krouse

Context & Ripple Effects

Netflix's DVD business still served 2.7 million US subscribers in 2019, valued in part for a catalog not available through streaming. This announcement turns that long-running residual service into a defined wind-down.

The closure marks the end of the distribution model that preceded Netflix's streaming-led business; later coverage documented employees reflecting on the service's industry impact as the shutdown approached.

First-order effects

  • Remaining DVD-by-mail subscribers lose access to Netflix's physical-disc catalog when final shipments end in September, and Netflix can retire the logistics and customer-support operation behind the service.
  • Netflix's consumer offering becomes entirely streaming-based, eliminating a separate channel that could carry titles absent from its digital library.

Second-order effects

  • Subscribers who relied on discs for unavailable or hard-to-stream titles must shift to other physical-media, rental, or digital options, increasing the importance of catalog licensing and availability elsewhere.
  • The exit further concentrates Netflix's product, operations, and content decisions around streaming rather than maintaining a small but distinct legacy subscription service.

Third-order effects

  • If similar legacy services continue to close, access to older and less commercially prominent film and TV catalogs may depend more heavily on streaming rights decisions than on physical distribution.
  • The move is another sign of entertainment platforms simplifying around scalable digital delivery, even when a legacy format retains a loyal niche audience.

The trend: Netflix's DVD shutdown is part of the broader shift from hybrid legacy distribution toward streaming-first entertainment services.

Discussion

  • About Netflix Ted Sarandos on x
    Netflix DVD - The Final Season
  • @dvdnetflix @dvdnetflix on x
    On September 29th, 2023, we will send out the last red envelope. It has been a true pleasure and honor to deliver movie nights to our wonderful members for 25 years. Thank you for being part of this incredible journey, including this final season of red envelopes. https://twitter…
  • @netflix @netflix on x
    After an incredible 25 year run, we've decided to wind down https://dvd.com/ later this year. To everyone who ever added a DVD to their queue or waited by the mailbox for a red envelope to arrive: Thank you! https://about.netflix.com/... https://twitter.com/...
  • @publicroad Ruth Graham on x
    As a subscriber and very active user of this service I'm genuinely gutted by this news! https://www.nytimes.com/...
  • @v21collective @v21collective on x
    shout out to everyone who still has a dvd or two in a red envelope hanging around https://www.nytimes.com/...
  • @lamw William Lam on x
    wait, what!? Netflix still had their DVD service running this entire time!? 😳 https://www.nytimes.com/...
  • @badtechno @badtechno on x
    Garbage decision. I still get the DVDs. So much better than Netflix streaming selections. Stick with the superior service: @criterionchannl https://twitter.com/...
  • @eringriffith Erin Griffith on x
    incredibly aol dial-up has outlasted netflix dvds https://twitter.com/...
  • @killercritics @killercritics on x
    I cannot possibly express just how important this program was to me as a kid in helping me discover so many films that are still difficult to find today. Physical media is invaluable and it's awful to see it receive yet another blow https://twitter.com/...
  • @mayascade Maya Cade on x
    there are significantly less films available for streaming than were at video stores / on home video and because of licensing rights and algorithmic curatorial demands, there always will be. netflix dvd remains the only way you can see *many* films. this is a true loss. https://t…
  • @levie Aaron Levie on x
    The most important question: Does the last user have to return the DVDs? https://twitter.com/...
  • @chrisfralic Chris Fralic on x
    Netflix winding down DVD shipments this fall after 25 years! I remember they sent early customers a plastic DVD holder. And the time we pitched them to partner with Half / eBay. They didn't do that deal but we indirectly sold tens of millions of their used DVDs over the years. ht…
  • @danawessel Dana Wessel on x
    These cowards are winding things down while there is still a Blockbuster in Bend, Oregon slinging DVDs. You tell me who won. https://twitter.com/...
  • @sonnybunch Sonny Bunch on x
    They never got that Rashomon DVD back from me and they never will. https://twitter.com/...
  • @gerrycanavan Gerry Canavan on x
    Getting this in the mail and not being able to get the endorphin rush from sending it back is the most cursed thing that could happen to a person https://twitter.com/...
  • @martinsfp @martinsfp on x
    RIP Qwikster https://twitter.com/...
  • @lmoses Lucia Moses on x
    Hard to believe but once upon a time you had to decide Wednesday what movie you were going to watch on Friday, kids https://www.hollywoodreporter.com/ ...
  • @rustybrick Barry Schwartz on x
    End of an era https://twitter.com/...
  • @crimson_mayhem_ @crimson_mayhem_ on x
    Imagine someone out there with an insane idea to get all the DVDs from Netflix for preservation purposes https://twitter.com/...
  • @notjessewalker Jesse Walker on x
    Netflix is dropping the part of its business where it can just buy physical movies without negotiating for the IP rights. This will mean a severe reduction in its catalog. https://www.wsj.com/...
  • @michaelavolio Michael Avolio on x
    Awful news for movie lovers in the US. Netflix's mail service is shutting down in September. Their selection is broader than any streaming service. This is a huge blow to those of us who like a wide variety of films. Countless films will be harder to see. https://about.netflix.co…
  • @jowens510 Jeremy C. Owens on x
    In 2013, Netflix made more than $900 million from renting DVDs by mail. Last year, it couldn't top $150 million. So $NFLX has announced “the last season” for the business that took down Blockbuster Video, with the final discs going out in Sept. https://www.marketwatch.com/ ... ht…
  • @logandobson Logan Dobson on x
    what if we just spun it off and named it Qwikster https://twitter.com/...
  • @danprimack Dan Primack on x
    Outlived by @loneblockbuster https://twitter.com/...